Goodfellow Inc.

On my other blog I am today writing about using my Stock Reviews...continue...

I own this stock of Goodfellow Inc. (TSX-GDL, OTC-GFELF). I started to look at this stock when I was searching for small cap stocks that paid dividends. It looked like an interesting stock. Goodfellow is a small cap stock that the Investor Reporter has written about a number of times.

I do not think you can call this stock a dividend growth company, rather it is a dividend paying small cap. The company has raised the dividends and lowered them. They have also paid special dividends. There is not much in the way of consistency here. The dividends have declined by 6.89% over the past 5 years but are up by 6.88% over the past 10 years.

The total return over the past 5 and 10 years is at 10.08% and 9.03% per year. The dividend portion of this return is 5.91% and 6.96% per year over these periods. The capital gain portion of this return is 4.18% and 2.28% per year over these periods. I personally have lost some 7.44% per year on this stock that I bought in 2010 and 2011. Looking back, I think I paid too much for my shares.

Outstanding shares have declined slightly (less than 1%) over the past 5 and 10 years. Shares are increased for Stock Options (there are not many) and decreased by buy backs. The company is current buying back shares.

No matter how you look at things, using 5 and 10 year changes or 5 year running averages changes, revenues, earnings and cash flow have grown little or declined. Revenue per share up less than 1% and down by less than 1% per year over the past 5 and 10 years. Earnings are down by 5.7% and 1.7% per year over the past 5 and 10 years. Cash Flow per Share is up by 2% and down by less than 1% over the past 5 and 10 years.

The company is profitable. I have EPS going back to 1998 and they have had positive earnings each year. Cash Flow has also been positive over this period. Revenues, earnings and cash flow have all fluctuated since 1998.

The Return on Equity has not broken above 10 since 2010. The latest ROE is 4.5%. The ROE on comprehensive income is the same, at 4.5%.

The one good thing is debt ratios. The current Liquidity Ratio is 2.46 and the current Debt Ratio is 2.83. The current Leverage Debt/Equity Ratios are 1.55 and 0.55. These are all great ratios.

This stock is not doing well at the moment. See my spreadsheet at gdl.htm.

This is the first of two parts. Second part will be posted on Thursday, January 9, 2014 and will be available here.

Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. The company serves customers throughout Canada, the United States and abroad including the UK and China and the Middle East. H.Q is Delson, Quebec, just outside Montreal. It is about 60% owned by insiders. Its web site is here Goodfellow.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.